A Probability Model For Earnings Restatement

Given their prevalence in recent years, earnings management and financial restatements have been at the center of much of the discussion surrounding corporate malfeasance. This study builds a probability model for predicting the likelihood of earnings restatements by analyzing the trends in and the deviations from the industry averages of the return on assets, accounts receivable turnover, net profit margin, and operating cash flow to net income measures. Data are obtained for a sample of 104 firms (restating as well as non-restating) for the 2000 to 2001 period. The results suggest that deviations from the industry average of the accounts receivable turnover and the variability in the cash flow to net income provide good barometers for detecting fraudulent accounting. Potential restating firms have higher accounts receivable turnover rates than their industry counterparts and downward trends in their cash flow to net income, so an increase (decrease) in the accounts receivable turnover (operating cash flow to net income) significantly increases the likelihood of a restatement, at least in the current study.

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THE EFFECT OF OPERATING CASH FLOW, NET PROFIT, ROA AND ROE ON STOCK RETURN OF IDX

Jurnal Akuntansi ◽

10.33369/j.akuntansi.11.2.189-196 ◽

2021 ◽

Vol 11 (2) ◽

pp. 189-196

Author(s):

Jessy Safitri Sitorus ◽

Ernika Siburian ◽

Yosevin Simbolon ◽

Royto Enjelia br Naibaho

Keyword(s):

Linear Regression ◽

Cash Flow ◽

Stock Return ◽

Financial Statements ◽

Total Sample ◽

Net Income ◽

Return On Assets ◽

Return On Equity ◽

Net Profit ◽

Operating Cash Flow

This research was conducted to determine the effect of Operating Cash Flow, ROA Net Profit and ROE on the movement of Stock Return, data or information obtained through financial statements. And the method of data collection is done with Purposive Sampling there are 21 companies in a period of 3 years, therefore the total sample of this study should be 63 samples. But because the data of this study using outliers then the total sample became 41. Then analyzed using multiple linear regression using SPSS 20 software. From this research, the researchers obtained results, namely: Operating Cash Flow, Net Income, and ROA individually had no significant effect on Stock Return. ROE individually affects and is significant to the Return of Shares. Operating Cash Flow, Net Income, ROA and ROE are simultaneously concurrently and significantly impacted on Stock Return. Keywords: Operating Cash Flow, Net Income, Return on Assets, Return on Equity, Share Return.

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KEBIJAKAN PEMBAGIAN DIVIDEN KAS DI PERUSAHAAN SUB SEKTOR PERDAGANGAN ECERAN

JIAFE (Jurnal Ilmiah Akuntansi Fakultas Ekonomi) ◽

10.34204/jiafe.v7i2.3800 ◽

2021 ◽

Vol 7 (2) ◽

pp. 175-186

Author(s):

Rochman Marota ◽

Vinna Oktaviani ◽

Amelia Rahmi

Keyword(s):

Cash Flow ◽

Firm Size ◽

Sampling Method ◽

Stock Exchange ◽

Net Income ◽

Investment Opportunity ◽

Purposive Sampling ◽

Investment Opportunity Set ◽

Operating Cash Flow ◽

Retail Trading

ABSTRAKTujuan dari penelitian ini adalah untuk menganalisis pengaruh laba bersih, arus kas operasi, investment opportunity set, dan firm size terhadap dividen kas. Penelitian ini dilakukan pada perusahaan sub perdagangan eceran yang terdaftar di Bursa Efek Indonesia periode 2015–2019. Sampel terdiri dari lima perusahaan yang dipilih dengan menggunakan metode purposive sampling. Penelitian ini menggunakan uji regresi linear berganda untuk menguji hipotesis. Hasil pengujian menunjukkan bahwa laba bersih berpengaruh positif terhadap dividen kas, sedangkan arus kas operasi, investment opportunity set, dan firm size tidak berpengaruh. Hal ini dapat menjadi perhatian bagi perusahaan untuk terus meningkatkan kinerja perusahaan dalam menghasilkan laba bersih. Dengan laba yang tinggi, para investor akan lebih tertarik untuk menginvestasikan dananya. ABSTRACTThe purpose of this study is to analyze the effect of net income, operating cash flow, investment opportunity set, and firm size on cash dividends. This research was conducted on sub-retail trading companies listed on the Indonesia Stock Exchange for the 2015–2019 period. The sample consists of five companies, selected using the purposive sampling method. It uses multiple linear regression to test the hypotheses. Results show that net income affects positively cash dividends. While cash flow, investment opportunity set, and firm size does not affect cash dividends. This can be a concern for the company to continue to improve the company's performance in generating net income. With high profits, investors will be more interested in investing their funds.

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Effects of Sales, Receivables Turnover, and Cash Flow on Liquidity

10.20944/preprints201911.0175.v1 ◽

2019 ◽

Author(s):

Rusdiyanto Rusdiyanto ◽

Dian Agustia ◽

Soegeng Soetedjo ◽

Dina Fitrisia Septiarini ◽

Susetyorini Susetyorini ◽

...

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

Secondary Data ◽

Financial Statements ◽

Financial Statement ◽

Sales Growth ◽

Accounts Receivable ◽

Operating Cash Flow ◽

Google Search ◽

A Company

In this study, the author proposes to evaluate the effect of sales growth, Receivable Turnover and operating cash flow on the liquidity of PT. Unilever Indonesia Plc. The research method used is descriptive method with a quantitative approach. In this statement, the population used in this study is the financial statement data from PT. Unilever Indonesia Plc. from 2010 to 2018, the technique of determining the sampling uses Purposive Sampling. This research data uses secondary data from PT. Unilever Indonesia Plc financial statements from 2010 to 2018. All data sources were obtained from the website of the Indonesia Stock Exchange at https://www.idx.co.id, the company's website and Google search. Our analysis reveals that sales growth and accounts receivable turnover from PT. Unilever Indonesia Plc. has no influence on the liquidity of PT. Unilever Indonesia Plc, while operating cash flow has an influence on the Liquidity of PT Unilever Indonesia Plc. This means the ups and downs of the value of sales and accounts receivable turnover of a company has no influence on the liquidity of PT. Unilever Indonesia Plc, while operating cash flow has increased or decreased has an influence on the liquidity of PT Unilever Indonesia Plc. The value of sales growth, accounts receivable turnover and operating cash flow can explain the liquidity of PT Unilever Indonesia Plc. by 78%, while 22% is explained by other factors which are not included in this study.

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Subprime Crisis – A Corporate Acquisition Opportunity?

JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT ◽

10.31966/jabminternational.v28i2.546 ◽

2021 ◽

Vol 28 (2) ◽

pp. 20

Author(s):

VISHAL SRIVASTAVA ◽

SUNDER RAM KORIVI ◽

DIPASHA SHARMA

Keyword(s):

Cash Flow ◽

Operating Performance ◽

Profit Margin ◽

Subprime Crisis ◽

Return On Assets ◽

Corporate Acquisitions ◽

Return On Equity ◽

Crisis Period ◽

Operating Profit ◽

Operating Cash Flow

Corporate acquisition can be considered as one of the best processes of corporate restructuring. This study is focused to evaluate the post-acquisition operating performance of listed Indian companies (acquirers) which have made acquisitions during subprime crisis period i.e. from FY 2007-08 to FY 2009-10. Paired sample t-test has been used on four operating performance indicators i.e. Return on Equity(ROE), Return on Assets (ROA), Operating Profit margin (OPM) and Operating Cash flow to Net Sales ratio (OCF/Net Sales) to check whether operating performance of acquirers has significantly improved post-acquisition. This study has revealed that there is no significant improvement in firms’ operating performance based on financial parameters i.e. Return on Equity (ROE), Return on Assets (ROA) and Operating Profit Margin (OPM), post corporate acquisitions made during subprime crisis period. The study finds that there was negative impact based on these parameters. Though Operating Cash Flow to Net Sales ratio has improved significantly for the companies which have made acquisition in FY 2007-08 and FY 2008-09 but similar findings could not be achieved for FY 2009-10. This study will find its significance in present scenario wherein corporate acquisitions are seen as the fastest way to achieve growth. Corporate world may derive its growth strategy from this study.

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Does recycling improve information usefulness of income? The case of Japan

Asian Review of Accounting ◽

10.1108/ara-11-2015-0111 ◽

2017 ◽

Vol 25 (3) ◽

pp. 376-403

Author(s):

Frendy ◽

HU Dan Semba

Keyword(s):

Empirical Evidence ◽

Cash Flow ◽

Predictive Power ◽

Value Relevance ◽

Accounting Standards ◽

Net Income ◽

Content Type ◽

Japanese Firms ◽

Incremental Value ◽

Operating Cash Flow

Purpose The Accounting Standards Board of Japan (ASBJ) proposed a new set of endorsed International Financial Reporting Standards in June 2015. ASBJ claims that non-recycling of other comprehensive income (OCI) items decreases the information usefulness of earnings in a proposed comprehensive income standard. There has been no existing empirical evidence which supports the ASBJ’s statement and the purpose of the study is to test whether OCI recycling improves information usefulness of net income from six perspectives: relative and incremental value relevance, persistence, variability, operating cash flow and net income predictive power. Design/methodology/approach This paper is an empirical work using a listed Japanese firms sample of 5,385 firm-years from fiscal year 2012-2014. Findings The results challenge the ASBJ’s claim that recycling improves the general information usefulness characteristics of net income. The empirical results show that OCI recycling improves net income’s relative value relevance characteristic of financial firms. However, recycling information by itself does not improve the incremental value relevance, and the predictive power of operating cash flow and net income. The authors also find that the inclusion of recycling decreases the persistence and increases the variability of net income. Research limitations/implications This paper has two research limitations. First, this study is constrained to analyze a limited OCI recycling data that is recently disclosed by listed Japanese firms. Second, the results of this study have limited external validity to capital markets with OCI reclassification standards that deviate from Japanese GAAP. Originality/value This study provides initial empirical evidence that examines information usefulness of OCI recycling in Japan. The findings of this study are relevant for accounting standards setters aiming to increase the information usefulness of earnings for capital market investors.

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Pengaruh Arus Kas Operasi, Laba Bersih, dan Hutang terhadap Kebijakan Dividen (Dividend Payout Ratio) pada Perusahaan Manufaktur yang Go Public di Bursa Efek Indonesia Tahun 2005-2009

BISMA (Bisnis dan Manajemen) ◽

10.26740/bisma.v4n1.p66-76 ◽

2018 ◽

Vol 4 (1) ◽

pp. 66

Author(s):

NENY TIKANA ◽

SUSI HANDAYANI

Keyword(s):

Cash Flow ◽

Capital Markets ◽

Dividend Policy ◽

Linear Regression Analysis ◽

Net Income ◽

Manufacturing Companies ◽

Alternative Source ◽

Sample Number ◽

Dividend Payout ◽

Operating Cash Flow

In the expansion, companies need a lot of sources of funding, that is through capital markets. Capital markets are an alternative source of external funding sources in addition to loan funds. With the capital markets, investor can invest in many different investment options, one of which is stock. Return the stock received by investors may include capital gains and dividends. Dividend is a part of the projected dividendd policy with a dividend payout ratio (DPR). Dividend policy is influenced by several factors including the operating cash flow, net income, and debt. The purpose of this study was to examine and analyze the influence of operating cash flow, nt income, and debt to dividend policy (dividend payout ratio) at a manufacturing company that went public on the Indonesia Stock Exchange in 2005-2009. This study uses purposive sampling method to take samples, in order to obtain a sample number 27 manufacturing companies. The method of analysis used is multiple linear regression analysis with the help of analysis tools SPSS version 16.0. Based on the results of data analysis can be concluded that there is a simultaneous influence of operating cash flow, net income, and debt to dividend policy (dividend payout ratio). While partial, operating cash flow negative influence on dividend payout ratio. That is because the large cash is not necessarily distibuted as dividends, because dividends depend essentially on the policy of the company itself and the profits of the acquired companies. Net income has a positive effect on dividend payout ratio for dividends derived from net income and companies will share profits if it makes a profit. The Debt has negative effect on dividend payout ratio for firms to prioritize paying off debt rather than dividends.

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ABILITY OF NET INCOME IN PREDICTING DIVIDEND YIELD: OPERATING CASH FLOW AS A MODERATING VARIABLE

Archives of Business Research ◽

10.14738/abr.61.4128 ◽

2018 ◽

Vol 6 (1) ◽

Cited By ~ 1

Author(s):

Zarah Puspitaningtyas

Keyword(s):

Cash Flow ◽

Net Income ◽

Dividend Yield ◽

Operating Cash Flow

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The Incremental Usefulness Of Income Tax Allocations In Predicting One-Year-Ahead Future Cash Flows

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v23i4.1378 ◽

2011 ◽

Vol 23 (4) ◽

Author(s):

Benjamin P. Foster ◽

Terry J. Ward

Keyword(s):

Cash Flow ◽

Income Tax ◽

Financial Statements ◽

Cash Flows ◽

Financial Accounting ◽

Font Size ◽

Long Time ◽

Operating Cash Flow ◽

One Year ◽

Future Cash Flows

<h2 style="text-align: justify; margin: 0in 34.2pt 0pt 0.5in; mso-hyphenate: none; tab-stops: center 3.25in;">Interperiod income tax allocation has been a hotly debated financial accounting issue for a long time.  Critics of interperiod tax allocation frequently question the usefulness of the extra information, particularly considering the FASB’s decision usefulness approach stated in its Conceptual Framework.  This study extends the research of Cheung et al. (1997) and Krishnan and Largay (2000) by using the ability to predict future taxes paid and future cash flow as criteria to evaluate the usefulness of interperiod tax allocation. This study extends previous research by examining not only whether interperiod tax allocation included in financial statements is useful, but also by examining whether such information is incrementally useful beyond taxes paid. For predicting future taxes paid and operating cash flow, our analyses provides little evidence that interperiod tax allocation information included in financial statements adds incremental predictive value beyond taxes paid as reported on the cash flow statement.</h2>

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Effect Of Net Income And Operating Cash Flow On Cash Dividends

JOURNAL OF APPLIED MANAGERIAL ACCOUNTING ◽

10.30871/jama.v3i2.1574 ◽

2019 ◽

Vol 3 (2) ◽

pp. 145-158

Author(s):

Sherly Rinjani ◽

Uswatun Hasanah

Keyword(s):

Cash Flow ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Sampling Technique ◽

Multiple Linear Regression Analysis ◽

Cash Flows ◽

Net Income ◽

Financial Condition ◽

Operating Cash Flows ◽

Operating Cash Flow

In invested, investors are more interested to shared profits at the form of cash dividends. The factor that can determine the amount of cash dividends that companies shared to investors are financial condition of the company which consists of net income and operating cash flow. The objective of this research is to determine the influence of net income and operating cash flows on cash dividends. The population of this research was pharmaceutical sub-sector manufacturing company on the Indonesia Stock Exchange (IDX) 2013-2018 Period. The sampling technique used in this research is purposive sampling method, and five companies have conform of that criteria sampling. This research used multiple linear regression analysis with IBM SPSS 23 software.The result of this research showed that (1) net income has influence on cash dividends (2) operating cash flow has influence on cash dividends.

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Relevansi Nilai Earning per Share, Price Book Value, Cash Flow, Current Ratio dan Harga Saham: Return on Asset Sebagai Pemoderasi

Jurnal Akuntansi Maranatha ◽

10.28932/jam.v12i2.2152 ◽

2020 ◽

Vol 12 (2) ◽

pp. 187-202

Author(s):

Arry Eksandy ◽

Dirvi Surya Abbas

Keyword(s):

Cash Flow ◽

Stock Price ◽

Stock Exchange ◽

Sampling Technique ◽

Share Price ◽

Manufacturing Companies ◽

Return On Assets ◽

Current Ratio ◽

Book Value ◽

Operating Cash Flow

The purpose of this study is to determine the results of Earnings Per Share, Book Value Equity, Operating Cash Flow, Investment Cash Flow, Funding Cash Flow, Current Ratio, Asset Returns and Asset Returns moderate Operating Cash Flow to Share Prices in manufacturing companies found in Indonesia stock exchange. This research population publishes manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2018 period. The sampling technique uses purposive sampling technique. Based on predetermined criteria the number of samples obtained by 9 companies. The type of data used in this study is secondary data using panel data regression analysis methods. The results showed that Earnings Per Share and Book Value of Equity showed a positive effect on the Share Price, then, Funding Cash Flow, Return on Assets and Return on Assets moderate the Operating Cash Flow negatively evaluating the Stock Price. Whereas Operating Cash Flow, Investment Cash Flow, and Current Ratio do not affect the stock price. Keywords: Stock Prices, Cash Flow, Finance Ratio

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